QP: Complaining that the PM is in New York

While the prime minister and his deputy were off to New York—the PM to the United Nations General Assembly, his deputy to meetings with the US treasury secretary—all of the other leaders were present. The anti-trans demonstrations outside the Hill were largely a failure, drowned out by counter-protesters, which was going to come up later on. Pierre Poilievre led off in French and stated that the prime minister said this was a difficult time for politicians, that the government declared victory over inflation prematurely and it rose again last month, before he demanded the government bring down taxes and so-called “inflationary deficits” (which is not a thing we’re dealing with). François-Philippe Champagne rose to much applause, before he said that he heard three things from Canadians—to help with the cost of groceries, the cost of housing, (the third thing didn’t come through), and they know that the government is there for them. Poielivre got up to needle the Liberals for their enthusiastic response to Champagne and suggested maybe they want him as leader instead, before deploying his usuals slogans. Champagne patted himself on the back for calling in the grocery CEOs before saying that people were tired of Poilievre’s slogans. Poilievre switched to English to complain about Trudeau going to New York before demanding they balance the budget and cut the carbon price. Jonathan Wilkinson got up to recite some lines about affordability before listing actions taken to address affordability while dealing with the existential threat of climate change. Poilievre again repeated that Trudeau went to New York while people have to pay carbon prices and demanded the cut it. Anita Anand pointed out that they have a plan to help Canadians unlike the Conservatives, and patted herself on the actions taken. Poilievre spouted a bunch of utter nonsense about inflation, and this time Sean Fraser for up to complaint that Poilievre only attacks the vulnerable and doesn’t have any plans to help families.

Yves-François Blanchet led for the Bloc, and complained about housing prices, and the supposed $900 million he claimed the federal government is withholding from Quebec. Fraser said he is working with the province. Blanchet insisted this was interference, and said that Ottawa should build housing (which he just said was Quebec’s jurisdiction) and then demanded the government stop subsidising the oil and gas sector and use that money for old age security. Wilkinson said that they have already ended subsidies.

Jagmeet Singh rose for the NDP, and demanded federal action against renovictions and “demovictions” (which is not really federal jurisdiction). Fraser praised the National Housing Plan, and that the government was going to build more houses. Singh switched to French to complain there were no affordable units to rent, and wanted guarantees they would be built. Fraser again praised the National Housing Plan, and switched back to English halfway through to complete his same talking points.

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Roundup: Stupid polls about the monarchy

It appears to be the season for reporting on really stupid polls, because there was yet another one yesterday, saying that an increasing number of Canadians want to “reconsider” our ties to the monarchy, which is already a misleading turn of phrase because we have a domestic monarchy, and have since 1931. Yes, we time-share their natural persons with the UK and thirteen other realms, but the Canadian monarchy is a Thing, and it’s not a gods damned foreign imposition.

What makes this kind of polling even more irresponsible is the fact that there is simply nothing in there about what they expect to replace it with, because there are myriad options, and absolutely no exploration of any of them. It’s also extremely relevant because that’s how Australia’s republican movement faltered—voters were not in favour of the appointed head of state option presented in the referendum, and since its failure, support for the monarchy in that country has increased. (Better the devil you know, and all of that. On top of that, getting rid of the monarchy would require a wholesale rewrite of our constitution (because it’s the central organizing principle), and would abrogate all of the treaties with First Nations, because they are all with the Crown, which would add a whole other layer of complexity for our relationship and reconciliation. (In fact, there is a compelling argument that ending the monarchy would simply mean completing the colonial project).

There is no simple yes/no choice for the future of the monarchy in Canada—it’s yes/which model to replace it with (because you can’t not have an organizing principle for executive power, and you really want to have some kind of a constitutional fire extinguisher available), and how to go about doing it, and stupid poll questions like this just elide over that reality in a completely misleading way.

Ukraine Dispatch:

A Ukrainian attack on a shipyard in occupied Crimea has damaged two Russian ships undergoing repairs at the facility and caused a fire. President Volodymyr Zelenskyy has vetoed an anti-corruption bill that contained a loophole that allowed people to forgo disclosing assets for another year. European Commission president Ursula von der Leyen also praised Ukraine’s progress toward EU membership, but said that they still have more work to do.

https://twitter.com/ukraine_world/status/1701984458960765381

https://twitter.com/rustem_umerov/status/1702012801131102435

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Roundup: Losing faith in the justice system because of provincial choices

The CBC has a story out about how a retired corporal from the military has lost faith in the justice system because court delays stayed the trial of her alleged attacker, and you can bet that pretty much everyone is going to take absolutely the wrong lessons from this, most especially legacy media.

The administration of justice—courts, Crown prosecutors, support staff—are all firmly within provincial jurisdiction. And for decades, provinces have been under-funding their systems while whinging that the federal government isn’t doing things like making bail harder to get (which is, frankly, unconstitutional). There is a story out of Toronto on the very same day about how staffing shortages—because of the province—have caused closures in courtrooms which led to a different sexual assault trial being tossed because they can’t get a trial within a reasonable time for the rights of the accused. And in the case of the corporal, it was because the Crown prosecutors (again, provincial responsibility) couldn’t get their shit together to push the case forward. And no, this has nothing to do with the federal government not filling judicial vacancies fast enough (which I have condemned this government for). These are all problems that are squarely within the provinces’ responsibilities.

And you can bet that people are going to try to both-sides this military issue because the provinces have been whinging that the military turning over cases to the civilian system is leaving them under-resources, even though it’s a handful of cases and the provinces have consistently made the policy choice over decades to under-fund their system. Trying to shift the blame to the federal government or whine that they’re not getting enough money is a well-worn pattern that we shouldn’t let them get away with. Unfortunately, that’s not in legacy media’s playbook, and you can bet that we’ll get more rounds of angry accusations that the federal government “let this happen” when clearly the failure was provincial the whole time.

Ukraine Dispatch:

Ukrainian forces say they have reclaimed even more territory in the east and south parts of the country, as well as off-shore drilling platforms near occupied Crimea. Ukrainian forces have also been collecting Russian bodies along the “road of death” that they retook in June, so that they can exchange them for their own comrades, living and dead. President Volodymyr Zelenskyy is calling on his country to remain focused on the war, with warnings that a “wartime budget” is coming, meaning this could go on for longer than many have hoped.

https://twitter.com/ukraine_world/status/1701223223440928994

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Roundup: A rate hold and inappropriate reactions

The big news of the day was that the Bank of Canada opted to maintain their headline rate at five percent, but warned that future rate hikes are still possible, depending on how the data look with future decision dates. This was a decision based entirely on the data—and the very mild contraction in the second quarter are certainly pointing to the fact that the economy is finally starting to slow so that maybe it can start to take the air out of excess demand. Nevertheless, I’m still expecting those three premiers who sent open letters to do a victory lap as though they had any say in the matter.

The bigger problem was Chrystia Freeland putting out an official statement saying that she was pleased with the decision, and while she respects the Bank’s independence, the government will use all of its tools to help bring inflation down (though one is a bit more dubious about that part). Why Freeland’s statement is a bigger problem is because she has a much bigger stick to wield with the Bank, and she has the tools that could force the governor to resign, which we haven’t seen since the Coyne Affair in the fifties, which led to the Bank shoring up its institutional independence. Freeland should know better, but I suspect that with all of the attention being paid to those premiers and their boneheaded open letters that she felt she needed to say something, and to offer some kind of reassurance to the public about the slowly improving state—because this government loves nothing more than reassuring pabulum. To compound that, every gods damned talking head over the past few days has been saying how great it was that the premiers were grandstanding like they way they are, because messaging politics just corrodes and rots our system.

Meanwhile, Jagmeet Singh decided he wasn’t getting enough attention, so he decided to embarrass himself and insist that the federal government can order the Bank to stop raising rates, because he thinks that interfering with an independent institution and forcing the resignation of the governor (which would be the outcome of such a move) are somehow winners for the economy. Singh would also apparently rather see inflation continuing to rip through our economy rather than the short-term pain in wresting it back down, because that is the counterfactual here. His “greedflation” insistence doesn’t bear out in the data, and a windfall tax won’t solve inflation. His suggestion here is beyond amateur hour, and shows that he remains unprepared for prime time.

Ukraine Dispatch:

Russians attacked a market in the eastern city of Kostiantynika yesterday, killing at least 17 people. The UN High Commissioner for Human Rights has recorded 26,717 civilian casualties in Ukraine so far, including 9,511 deaths. US Secretary of State Antony Blinken visited Kyiv, and praised the progress in the counteroffensive to date.

https://twitter.com/zelenskyyua/status/1699405764983415077

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Roundup: Open Letters to Tiff Macklem

BC premier David Eby decided he needed to be extra performative yesterday, and wrote an open letter to Bank of Canada Governor Tiff Macklem, urging him not to raise interest rates next month because of the “human cost” of these interest rate hikes—ignoring of course the counterfactual of the effects of unchecked high inflation and the “human cost” that it has over the short and medium term.

What is pretty galling in all of this is that Eby knows better. He was once a pretty good civil liberties lawyer, and he fully knows that the Bank is independent, and that they have a legal mandate that they need to fulfil when it comes to keeping inflation at two percent, and that their main policy tool is the blunt instrument of interest rates. His “I know the Bank is independent but…” spiel was frankly embarrassing, and should not have merited the attention it got from the media, but here we are.

Speaking of, Power & Politics was not only true to form in giving him a soapbox to make his point, and rather than doing their jobs of pointing to the irresponsibility of this kind of move, particularly at a time when you also have Pierre Poilievre warning that he’s going to fire the Governor (with what power?) and threatening the Bank’s independence. It would be great if CBC could do a single economics story properly and not just treat it like an issue to be both-sidesed, but they apparently have zero willingness to do so, and the fact that this Eby interview was that ignorant is a sign that they cannot be bothered to care about economics stories for anything than just trying to plug them into their established narratives, and it’s doing the country an extreme disservice.

Programming Note: I’m taking the full long weekend off, so I’ll see you early next week.

Ukraine Dispatch:

Ukrainian forces have reported some success in the south and east, but I am also tickled by their latest video offering, telling all of those armchair generals to basically shut up because they’ve been doing the heavy lifting on their own. President Volodymyr Zelenskyy says that Ukraine has developed its own long-range weapons that can strike 700 kilometres away, which may have been a sly nod to the attack on Russian airbases that destroyed a number of fighters. The mayor of Kyiv wants to build more fortifications, because there always remains the threat from Russia.

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Roundup: Demands to recall Parliament to make more speeches

The Cabinet retreat has wrapped, and there is no big announcement on housing policy other than to say that they know there’s not one silver bullet that will solve the housing challenges, so that means more work. Pierre Poilievre dutifully summoned reporters to the Foyer in the West Block to mock the lack of action and decry “What was the solution? More speeches, more photo ops…” And then he demanded that Parliament be recalled so that they can “take action” on housing, but without a legislative proposal, all this would mean is a take-note debate, which would be a bunch of twenty-minute speeches being read into the record. You know, exactly the thing that he was mocking Trudeau about. So that’s consistent.

Meanwhile, the debate about international students is picking up, with the government seems to want to deal with the problem of dubious private colleges at the same time, even though they don’t really make a dent in the housing crisis, and leads to problems of just how the federal government determines legitimacy (which is a provincial responsibility), and there a host of other problems with the programme that they may not have the capacity to deal with. Limiting international students could have other, longer-term repercussions, as they are quite easy to stream into permanent residency, and good for Canada in the long run—but again, there are problems in the system as it is.

With that in mind, Alex Usher’s thread has concerns about how the federal government could mess things up, while Mike Moffatt’s thread offers suggestions for things the federal government could do (or in several cases, undo) to relieve the pressure. This all having been said, a bit part of the problem here is that provinces have cut or frozen funding to these institutions, and limiting international students will be a huge financial blow to them, and that should be addressed somehow.

https://twitter.com/MikePMoffatt/status/1694317541559066707

Ukraine Dispatch:

Russians targeted Ukrainian grain facilities with drone attacks, destroying some 13,000 tons of grain at the Danube port of Izmail, while Ukrainians claim to have taken out a Russian air defence system in occupied Crimea with a drone attack of their own. President Volodymyr Zelenskyy hosted an international meeting about liberating Crimea from Russian control. And how to go about doing so.

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Roundup: Promising a spending cut—for real this time!

It shouldn’t be a surprise to anyone who has paid attention, but word has come down that new Treasury Board president Anita Anand will be tasking other ministers to find $15.4 billion in spending cuts with a deadline of October 2nd, and they really mean it this time. For realsies. The Liberals have been promising programme spending reviews for years now, but haven’t seemed to show any progress on them, or at least not in any public or transparent way, and that’s generally a problem for any government, and particularly one who has been in power for as long as this one has. Anand’s expertise is in governance, so she might have a chance to pull this off, but the civil service has fought back against Treasury Board presidents trying to make reforms—Scott Brison tried to reform the Estimates process and bring it back into line with the budget cycle, and he lost that battle, and it doesn’t look like any of his successors have even tried since. The other thing here is that $15.2 billion is going to be hard to justify if the military is excluded, but can they actually make cuts (setting aside the lapsed funding they can’t spend because of capacity issues)?

The reaction has pretty much been predictable—public sector unions freaking out, Jagmeet Singh concern trolling that this means “essential services” will be cut, and Pierre Poilievre says the Liberals can’t be trusted to make cuts. (Erm, you remember the Chrétien-Martin era, right?) But for some more practical thinking, here’s Jennifer Robson, who teaches public administration:

https://twitter.com/JenniferRobson8/status/1691613225677144349

Ukraine Dispatch:

Russian missiles have struck Lviv and other parts of western Ukraine, which is far from the fighting, including a factory in Lutsk. In the early hours of Wednesday, Russian drones have been spotted heading for the Izmail port on the Danube River, which threatens more grain shipments. President Volodymyr Zelenskyy was on the front lines in Zaporizhzhia to meet troops there. Meanwhile, farmers in Ukraine are facing the prospect of rock-bottom grain prices if they can’t ship it, which means it’s worth more to store than to sell.

https://twitter.com/zelenskyyua/status/1691510365304102915

https://twitter.com/defenceu/status/1691366868760829953

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Roundup: The usual NATO meeting tropes

In advance of the NATO summit happening today in Latvia, Justin Trudeau was in Latvia to announce that Canada would be doubling our military presence in that country by 2026, which is actually easier said than done with the current state of our Forces. This was, of course, superseded by news that Turkey has agreed to drop their objections to Sweden joining NATO (leaving Hungary as the last to sign off, though they insisted they won’t be the last). Here’s Stephen Saideman to parse what this means.

Of course, as with any NATO meeting, we get the usual lazy tropes about Canada supposedly being a “freeloader,” because we don’t spend the minimum two percent of our GDP on defence. But that analogy doesn’t actually work because NATO isn’t a club where members pay dues and then it does stuff with them—it’s a military alliance that depends on the participation of member countries, and Canada participates. We participate more than a lot of other countries who have a higher percentage of defence spending than we do. And it bears reminding yet again that the two percent target is a stupid metric, because the fastest way to meet the target is to tank your economy and have a recession, and it’s easier for countries with a smaller GDP denominator to meet. But hey, the two percent target is easy fodder for media because they can make hay about it with little regard for the nuance, which is why it has been a fixation for years now.

And yes, one of our biggest issues when it comes to our military spending and capacity to spend is our ability to recruit, which we have had a hard time doing—it’s a very tight labour market, and it can take a long time for applications to be processed, by which time potential recruits are likely to have found new jobs. It also seems to me that the military has never adapted to the changes that happened about two decades ago, when they could no longer rely on economically-depressed regions (such as the Atlantic provinces) because of the rise of the oil sands and the ability for people to fly out to Fort McMurray on two-weeks-in-two-weeks-out shifts, that changed their fortunes. We’ll see if they can fix their recruiting now that they are allowing permanent residents to apply, but that is one of the major challenges they need to address.

Ukraine Dispatch:

Russia launched 28 drones over Kyiv and Odessa in the early morning hours, 26 of which were downed. Ukrainian forces also say that they have trapped Russian occupation forces in Bakhmut and that they are pushing them out. A statistical analysis shows that as many as 50,000 Russian men have been killed in the fighting to date.

https://twitter.com/ukraine_world/status/1678651881185243137

https://twitter.com/defenceu/status/1678332390052098048

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Roundup: May inflation shows it’s cooling faster

Statistics Canada released the May inflation numbers yesterday, and they were well down from the month previous, the headline number now down to 3.4 percent, which is in line what the Bank of Canada is predicting about it returning to about three percent by the end of the year. Part of this is because year-over-year gasoline prices fell, meaning that there is a base-year effect in play, but food inflation remains high (in large part because of climate change affecting food-growing regions and the difficulty in getting Ukrainian grain to market continues to keep those prices high), and mortgage interest rates are one of the factors fuelling this. Unfortunately, you have certain economists like Jim Stanford who think that this is the Bank causing this inflation, when in fact if they hadn’t raised rates when they did, higher inflation would still be ripping through the economy. (Seriously, stop listening to Jim Stanford).

Additionally, these numbers continue to prove that Pierre Poilievre’s narratives about inflation are specious at best, but are pretty much bullshit he is squeezing into whatever the headline seems to be. Last month, when there was a 0.1% uptick in inflation, Poilievre blamed it on the news of the budget deficit, and that this was proof that the deficit was “pouring gasoline on the inflationary fire.” That was wrong, and the Bank of Canada said that the trend was that inflation was still decreasing (and that the government’s fiscal policy was not having an effect on that decelerating inflation). And lo, inflation is still decelerating, in spite of the budget deficit. It’s like Poilievre has no idea what he’s talking about.

Meanwhile, economist Stephen Gordon has a few thoughts the numbers.

Ukraine Dispatch:

Two Russian missiles hit the eastern Ukrainian city of Kramatorsk, killing four and destroying a cafe that was fairly well known. Meanwhile, a UN human rights report shows that Russian forces carried out widespread and systematic torture of civilians they detained before executing them, but also found that Russians troops detained by Ukrainians also alleged torture and mistreatment.

https://twitter.com/united24media/status/1673784944798191617

https://twitter.com/defenceu/status/1673769121450696724

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Roundup: Toronto Pride at a necessary time

It was Pride in Toronto over the weekend, and one that is more necessary than ever given the rising levels of anti-LGBTQ+ hatred that is being directed toward queer and trans communities, as old libellous tropes about sexual predators resurface and are being used by politicians, including those in Canada, to demonise queer and trans people. Look at some of the things Blaine Higgs has been saying in New Brunswick—this is not a “parental rights” issue, it’s one where he is making it quite clear that he doesn’t want LGBTQ+ people to take up space in public. It has also been pointed out that even though conversion therapy has been banned in Canada, the ideology that underpins it continues to be strong, and the Conservative candidate in Portage—Lisgar was advocating for it during the by-election, so these fights are not over by any stretch of the imagination.

As for the parade, Justin Trudeau was absent as he was off to Iceland for a summit, but his deputy, Chrystia Freeland, did lead the Liberal contingent. Jagmeet Singh was present, but Pierre Poilievre was not, which shouldn’t surprise anyone at this point. (Also, Singh didn’t tweet about Toronto Pride, nor did Poilievre even acknowledge it).

Ukraine Dispatch:

In spite of the ongoing attacks against Ukraine over the weekend, Ukrainians were enjoying the prospect of the attempted mutiny/coup that was taking place in Russia.

https://twitter.com/zelenskyyua/status/1673028522971987974

As for Russia and the Wagner mutiny/coup that wasn’t, it fizzled out as they reached the outskirts of Moscow, with rumours that Bularussian dictator Alexander Lukashenko had to broker the deal to end it, and that the Wagner leader will head to Belarus now, but we’re missing a lot of independent reporting on what may have happened, so we’ll see in the days ahead.

https://twitter.com/thestudyofwar/status/1673116584674754561

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